Navigating Taiwan's Labor Regulations: A Comprehensive Guide for Employers

Taiwan's employment landscape is governed primarily by the Labor Standards Act and related regulations from the Ministry of Labor. These frameworks establish clear guidelines for working conditions, compensation, and employee rights, ensuring fair treatment and balanced employer-employee relationships.

Understanding Working Hours in Taiwan

Under Taiwan's Labor Standards Act, standard working hours are capped at 8 hours per day and 40 hours per week. Employers may implement flexible scheduling with consent from labor unions or workplace committees, provided weekly hours do not exceed 48 hours. Attendance records must be maintained for five years and provided to employees upon request.

Types of Working Arrangements

Standard Hours: Maximum 8 hours daily, 40 hours weekly
Overtime: Requires union/committee approval, with monthly limits of 54 hours and quarterly caps of 138 hours
Reduced Hours: Permitted through mutual agreement without wage reduction
Minor Workers: Limited to 8-hour days with no overtime or night work for those under 16

Overtime Regulations and Compensation

Monthly overtime is restricted to 46 hours under normal circumstances, with exceptions for emergencies. Employees receive two weekly rest days—one mandatory day off and one flexible rest day. Overtime compensation follows specific rates:

Scenario	Compensation Rate
Weekday Overtime (First 2 hours)	Base wage + 33%
Weekday Overtime (Additional hours)	Base wage + 67%
Rest Day Overtime (First 2 hours)	Base wage + 133%
Rest Day Overtime (Extended hours)	Base wage + 167%

Employment Contracts in Taiwan

Taiwan recognizes both fixed-term and indefinite contracts. Fixed-term agreements apply to temporary, seasonal, or project-based work, while ongoing roles require indefinite contracts. Written contracts, though not mandatory, are strongly recommended to align with Labor Standards Act requirements.

Key Contract Components

Employee registration details (name, ID, position)
Compensation structure and insurance enrollment dates
Performance and disciplinary records
Work-related injury documentation
Job responsibilities and termination clauses

Employee records must be retained for five years post-employment. SailGlobal offers compliance consulting to help businesses navigate these requirements effectively.

Probation Period Guidelines

While Taiwan's labor laws don't specify probation periods, common practice allows 1-3 months, extendable to 6 months in special cases. Probationary employees retain full wage and benefit rights. Either party may terminate employment during probation without notice or severance, provided actions adhere to fairness principles.

For multinational companies expanding into Taiwan, understanding these regulations is crucial for sustainable operations. SailGlobal's expertise ensures compliance while maintaining operational flexibility.

Taiwan Labor Law Guide: Working Hours, Contracts & Compliance 2024